Formetal (Korea) Market Value
| 119500 Stock | KRW 3,525 520.00 17.30% |
| Symbol | Formetal |
Formetal 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Formetal's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Formetal.
| 11/11/2024 |
| 12/11/2024 |
If you would invest 0.00 in Formetal on November 11, 2024 and sell it all today you would earn a total of 0.00 from holding Formetal Co or generate 0.0% return on investment in Formetal over 30 days. Formetal is related to or competes with Rainbow Robotics, COWINTECH, CS BEARING, Young Poong, DAEMO Engineering, SP Systems, and Seoam Machinery. Formetal Co., Ltd. operates as a metal forging company in Korea More
Formetal Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Formetal's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Formetal Co upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.94 | |||
| Information Ratio | 0.0033 | |||
| Maximum Drawdown | 13.02 | |||
| Value At Risk | (3.06) | |||
| Potential Upside | 4.74 |
Formetal Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Formetal's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Formetal's standard deviation. In reality, there are many statistical measures that can use Formetal historical prices to predict the future Formetal's volatility.| Risk Adjusted Performance | 0.0465 | |||
| Jensen Alpha | 0.121 | |||
| Total Risk Alpha | (0.26) | |||
| Sortino Ratio | 0.0042 | |||
| Treynor Ratio | 9.08 |
Formetal Backtested Returns
Formetal appears to be very steady, given 3 months investment horizon. Formetal secures Sharpe Ratio (or Efficiency) of 0.16, which denotes the company had a 0.16% return per unit of risk over the last 3 months. By reviewing Formetal's technical indicators, you can evaluate if the expected return of 0.52% is justified by implied risk. Please utilize Formetal's Downside Deviation of 1.94, coefficient of variation of 1830.41, and Mean Deviation of 1.54 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Formetal holds a performance score of 12. The firm shows a Beta (market volatility) of 0.0135, which means not very significant fluctuations relative to the market. As returns on the market increase, Formetal's returns are expected to increase less than the market. However, during the bear market, the loss of holding Formetal is expected to be smaller as well. Please check Formetal's coefficient of variation, jensen alpha, sortino ratio, as well as the relationship between the standard deviation and total risk alpha , to make a quick decision on whether Formetal's price patterns will revert.
Auto-correlation | -0.23 |
Weak reverse predictability
Formetal Co has weak reverse predictability. Overlapping area represents the amount of predictability between Formetal time series from 11th of November 2024 to 26th of November 2024 and 26th of November 2024 to 11th of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Formetal price movement. The serial correlation of -0.23 indicates that over 23.0% of current Formetal price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.23 | |
| Spearman Rank Test | -0.22 | |
| Residual Average | 0.0 | |
| Price Variance | 73.4 K |
Formetal lagged returns against current returns
Autocorrelation, which is Formetal stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Formetal's stock expected returns. We can calculate the autocorrelation of Formetal returns to help us make a trade decision. For example, suppose you find that Formetal has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Formetal regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Formetal stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Formetal stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Formetal stock over time.
Current vs Lagged Prices |
| Timeline |
Formetal Lagged Returns
When evaluating Formetal's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Formetal stock have on its future price. Formetal autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Formetal autocorrelation shows the relationship between Formetal stock current value and its past values and can show if there is a momentum factor associated with investing in Formetal Co.
Regressed Prices |
| Timeline |
Pair Trading with Formetal
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Formetal position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Formetal will appreciate offsetting losses from the drop in the long position's value.Moving against Formetal Stock
The ability to find closely correlated positions to Formetal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Formetal when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Formetal - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Formetal Co to buy it.
The correlation of Formetal is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Formetal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Formetal moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Formetal can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Formetal Stock
Formetal financial ratios help investors to determine whether Formetal Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Formetal with respect to the benefits of owning Formetal security.